There Has to be an Easier Way – Life Insurance
Everyone knows that life insurance is an important fact of life. Departing from this world does not wipe out all of your debt, take care of children or fill the income void. But the complexity, expense and fine print often drives people into placing this sensitive subject on the back burner until it is too late. Here are some tips for buying life insurance so you can make a swift and educated decision on taking out a life insurance plan.
Two Choices in Plans
There are only two different types of insurance policies to choose from, whole and term. Always select term insurance to keep a plan simple and inexpensive. Whole insurance pays huge commissions to an agent plus uses your premiums to invest in market funds. It takes years to realize any type of equity in this type of plan. Whole insurance was once popular before there were so many investment plans available. Premiums for term insurance go toward one cause only, payment upon death.
How Much to Buy?
If you have a family that is dependent on your income, take your yearly salary and multiply by ten. If you are single and have little reason for leaving a large sum of money to family, buy enough to cover your burial and current expenses. Just remember, as you age situations change and a term policy will become more expensive the older you become.
Local agents are not really significant. Once you have a term plan for a set period of time, that is all you need. A local agent will only suggest plans that will benefit his or her commissions. The Internet offers thousands of companies, many with price comparisons and simple payment plans. Limit your search by eliminating insurance companies with poor ratings and questionable pasts. Your plan will be of little use if your life insurance company suddenly goes out of business.
Make the decision to get adequate coverage for your personal situation and stick to it. Once you know what type of policy to buy, how much you need and where to receive without hassle, simply make the payments. Insurance does not have to be complicated or expensive and that nagging little voice that reminds you to get coverage will be gone for good.